Southwest Airlines

Essay by kuriouskatUniversity, Bachelor'sB+, February 2007

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1. Using only evidence from the case (no additional research,) explain how you know that Southwest Airlines is a high-performing organization.

1) There is ample evidence within this case study to support the claim that Southwest Airlines is a high-performing organization. Southwest is the trend setter for the low fare market: In referring to the upcoming battle United and Continental has with Southwest the NY Times made it clear that Southwest is, "the pioneer of this strategy and keeper of the healthiest balance sheet in the industry. " Evidence of this lies in the California hubs, which accounts for the most heavily traveled area in the U.S., where Southwest increased its share in the market nearly 20% while United and Continental both experienced losses . Indeed as Southwest moved into San Jose, where American left due to recurring losses, Southwest was profitable from day one. The best evidence to prove that Southwest is performing well is the statement, "Southwest has been profitable in every one of the last 21 years, a record achieved by no other major U.S.

airline." If a reader knew nothing more about Southwest and the airline industry, when thinking about the economic health of the U.S. in the past 20 years, including recessions during that time, it is a remarkable achievement and a testament to the performing nature at Southwest Airlines.

New York Times, September 16 1994.

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